What is the council tax premium on second homes in the UK?

Full answer

England The Levelling-Up and Regeneration Act 2024 gave English local authorities the power to charge a premium of up to 100% on top of the standard council tax bill for dwellings that are occupied periodically as second homes (not main residences and not long-term empty properties). Councils must give one year's notice before introducing the premium. From April 2025, any council that gave the required notice can charge the full 100% premium, meaning the annual bill could be twice the standard rate. Individual councils decide whether to adopt the premium and at what level up to the 100% ceiling. Wales Wales legislated earlier. From April 2023, Welsh councils could charge up to a 300% premium on second homes. Many authorities in high-demand areas (Gwynedd, Pembrokeshire) have adopted the maximum. From April 2024 the discretionary ceiling was maintained at 300%. The Welsh Government has been particularly active in using the premium to discourage absentee ownership in communities where housing affordability is under pressure. Scotland Scottish councils can charge up to a 100% premium on second homes. The power has been available since 2013 for long-term empty homes and was extended to second homes by many councils following subsequent legislation. What Counts as a Second Home A second home for council tax purposes is a furnished dwelling that is not someone's sole or main residence. It is distinct from a long-term empty property (unfurnished) and from a property used as a holiday let (which may qualify for business rates instead of council tax if let for a sufficient number of days). Holiday Let Exemption A furnished holiday let that meets the HMRC criteria -- available to let commercially for at least 210 days per year and actually let for at least 105 days -- can be assessed for business rates rather than council tax, potentially avoiding the premium altogether. Small Business Rate Relief may then reduce or eliminate the rates bill. Planning Implications Owners of second homes in high-premium areas should check their local authority's website for the applicable rate. The combined effect of the council tax premium plus any stamp duty land tax surcharge (an additional 3% on second property purchases in England) makes second-home ownership significantly more costly in 2026.